SEC awards whistleblower with over $1.1 million

The Securities and Exchange Commission (SEC) announced giving more than $1.1 million award to a whistleblower, whose independent analysis led the staff to look at new conduct during an ongoing investigation. The whistleblower’s information and assistance helped the agency bring an emergency action preventing further investor harm. The whistleblower examined publicly available materials and conducted an analysis that revealed  new insights into the securities law violations, which helped the Commission protect investor assets from dissipation by the wrongdoer.

Jane Norberg, Chief of the SEC’s Office of the Whistleblower said:

Today’s award reflects the Commission’s commitment to award whistleblowers who provide high-quality independent analysis. Whistleblowers who devote time and effort to develop unique insights may afford the Commission important information about possible securities laws violations.


So far, the agency has awarded over $720 million to total of 113 individuals since the first award was issued in 2012. Payment of the awards is taken out of an investor protection fund set up by Congress. It is financed through monetary sanctions of security law violations paid to SEC.

To be eligible for award, a whistleblower needs to voluntarily provide the commission with reliable information that leads to successful enforcement action. The awards range between 10 and 30 % of the money collected by SEC when the sanction is for more than $1 million.

According to the Dodd-Frank Act, SEC must protect the identity of the whistleblower and not disclose any information that could reveal it.

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